Comments on: McCain and Obama and the T for Taxes Word http://thestrangedeathofliberalamerica.com/mccain-and-obama-and-the-t-for-taxes-word.html An Independent Netzine About Ideas Tue, 15 May 2012 16:14:24 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: MrTom http://thestrangedeathofliberalamerica.com/mccain-and-obama-and-the-t-for-taxes-word.html/comment-page-1#comment-10139 MrTom Sat, 23 Aug 2008 15:34:00 +0000 http://thestrangedeathofliberalamerica.com/?p=540#comment-10139 Here is something that seems correct from my undergraduate knowledge of economics and life-long experience with life. When governments tax, they spend, as locally as possible. This puts money back into the local economy, where the multiplier effect spreads the wealth through the local community (city, county, state, nation). When governments lower taxes on the wealty, they will invest much of their excess where it will generate the greatest return. Their money will chase the lower capital and labor costs across the globe. In other words, money is taken out of the local economies. It seems that government spending can promote a broad-based prosperity better than lowering taxes. Here is something that seems correct from my undergraduate knowledge of economics and life-long experience with life.

When governments tax, they spend, as locally as possible. This puts money back into the local economy, where the multiplier effect spreads the wealth through the local community (city, county, state, nation).

When governments lower taxes on the wealty, they will invest much of their excess where it will generate the greatest return. Their money will chase the lower capital and labor costs across the globe. In other words, money is taken out of the local economies.

It seems that government spending can promote a broad-based prosperity better than lowering taxes.

]]>